Abstract
The purpose of this paper is to examine the relationship between inter-firm value co-creation activities and channel performance. Specifically, we ask which discrete types of value co-creation affect economic and relational channel performance? What firm-level and environmental factors, if any, moderate these effects? Drawing on transaction cost theory, and using data from 154 manufacturer and e-commerce platforms, we make notable contributions to the e-commerce literature. We show that two discrete types of value co-creation activities (joint planning and flexibility to make adjustments) positively affect both economic and relational channel performance. A third type, joint problem solving, only affects economic performance. We identify two moderators of these relationships: innovation capability positively moderates the relationship between value co-creation and channel economic performance; market turbulence positively moderates the relationship between value co-creation and channel relationship performance. The results can help enterprises understand how to optimise their implementation of value co-creation processes.
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